Midas Funds

Fund Strategies and Market Commentaries
As of September 22, 2015

Midas Magic seeks its investment objective of capital appreciation by focusing primarily on large companies, with a broad orientation towards conservatively priced value stocks and aggressively priced growth issues.  The Fund seeks portfolio companies with global operations and superior returns on equity and assets.    The Fund’s overall portfolio, as compared with the S&P 500, has a heavy weighting towards financial services, as well as medical and technology companies, and less to economically sensitive industries such as energy and defensive consumer products companies.  The Fund is currently in a fully invested, neutral posture.

Midas Fund's strategy is to seek investments in higher quality senior and intermediate producers of precious metals and other natural resources with a growth component.  The gold price has been fluctuating between $1,080 and $1,300 per ounce during the 2015 year to date, and the Fund’s portfolio has fluctuated dramatically as a result.  Using the Fund’s cash reserves, recent additions to the portfolio include shares of large and intermediate gold producers and a royalty company with low costs and conservative balance sheets.

Midas Perpetual Portfolio uses a core “asset allocation” strategy to seek its investment objective to preserve and increase the purchasing power value of its shares over the long term.  The Fund’s asset allocations and target percentage ranges are gold (10-30%); silver (0-20%); Swiss franc assets (10-30%); hard asset securities (15-35%); and large capitalization growth stocks (15-35%). In the recent period, the Fund has benefited moderately from its target range allocations to gold and silver, and from its use of leverage. Midas Perpetual Portfolio’s holdings of large capitalization growth stocks include a variety of industries and, in addition, the Fund has recently eliminated a holding to reduce leverage.